TurboTax or an Accountant?

[jollystomper]

I bounce between TurboTax, Tax Act, and H&R Block tax software based on whichever I can get for the best deal that year. Mortgage stuff has never been an issue.

 

[haha]

When I was self employed, I used a CPA. Now that I am unemployed, I use Turbo-Tax. I buy the premier edition every year, and think it is money well spent. Once I tried to save a few $ with Deluxe, but it was much harder to do my MLP taxes so I wound up adding the Premier Upgrade.

Compared to the effort you put into doing taxes, I don't notice $100 or so. I do not plan to switch back and forth trying to save very little, and at the very least creating whole new learning curve.

Ha

 

[pb4uski]

Nico,

I think you should be able to handle it via TT. This year (the year of purchase) will likely be the worst as it will have a few oddball things from your closing. Beyond this year it is easier.

 

[Felix Mulier]

On the Downloaded version you get the schedules for those things but not the handholding.

Kats,
Could you be more specific on what you mean by "handholding"?

On a related point, not directed to anyone in particular, I prefer to have CDs in my hand, but might consider using the desktop download version of TT Deluxe from Vanguard. However, they say

Note: To qualify for the Vanguard discount, you must access your TurboTax® OnlineSM return from this page each time you log on to continue or finish your work.

Does this hold for desktop download users as well? The answer should be "no", but, well... Anybody know first hand?

Thanks

 

[REWahoo]

However, they say Does this hold for desktop download users as well? The answer should be "no", but, well... Anybody know first hand?

No.

Once you download the TT application, the program resides on your computer and you never need to return to Vanguard for access.

 

[Katsmeow]

Kats,
Could you be more specific on what you mean by "handholding"?

They don't ask you to questions to analyze your use of those forms. They give you the forms and you can search for information on them and they give you instructions but they don't walk you through it.

 

[RockyMtn]

I have used turbotax since 1994 and feel that it does as good if not a better job than a CPA. My return includes: rental property, home sale, self employed income, div, k-1's, cap gains, MLP's, etc, etc. Not a plain vanilla 1040 and TT handles with ease.

I have only used a CPA once and that was to basically back check some numbers when I had a casualty loss to claim. TT didn't handle that very well so had to force some numbers and decided to have cpa look at it for piece of mind.

TT has come a long ways since 1994!

 

[braumeister]

IS this personal experience or data-based?

I'm not REWahoo, but here's my experience. Before DW and I were married, she had always used a CPA for her taxes (a relative of one of her close friends). When we got hitched, I became curious when I got confused reading her CPA's rendition of her 1040, so I redid her prior year's return in TurboTax.

It turned out that the CPA had made some basic errors, and DW had paid several hundred dollars more than she should have.

Ever since then, TurboTax Deluxe has been the rule in this household.

 

[pb4uski]

Kats,
Could you be more specific on what you mean by "handholding"?....

They don't ask you to questions to analyze your use of those forms. They give you the forms and you can search for information on them and they give you instructions but they don't walk you through it.

To my knowledge with the download version you can either use forms or answer questions. I always use the forms as I find the questions annoying, but it is there for those who need it.

Plus, you can toggle between either mode.

 

[REWahoo]

IS this personal experience or data-based?

Late in responding, but basically anyone can call themselves a tax 'expert' and open up shop to do tax returns. No regulation, no certification, no licensing, no qualifications necessary:

... anyone who's not a CPA filing tax returns on behalf of a taxpayer is required to obtain a tax ID number for tracking purposes. But they currently don't have to take any qualification exams or courses to call themselves tax preparers.

It's like the wild west when anyone can put out a shingle and say they do returns.

Can you trust your tax preparer?

 

[MichaelB]

The final year that PWC did my taxes (employer mandated) I also did them on TurboTax, as a way to practice for following years on my own. As it turned out the returns each prepared were different. The tax manager at PWC asked me to send them to her and was honest enough afterward to admit that PWC got it wrong. An easy thing to happen because our tax code is so complex.

A tax preparer makes sense when the return is complex, and then only when the preparer is specialized.

 

[Al in Ohio]

Your still in the realm of easy itemized deductions and home mortgage interest and pt. Still very simple stuff as you will discover.

Stick with your same DIY plan and u b fine.

 

[2035]

I usually do my taxes myself...the old fashioned way...pen and paper, but I'm using an accountant this year because I bought a home (short sale).

 

[Texas Proud]

I've used Intuit ProSeries since 2005. For two years I prepared taxes with the software. For the last 7 years I've continued to use the software for family returns.

Last year I used TurboTax installed locally, and also the online version. I can assure you that TurboTax is not ProSeries. I'd venture a guess that other pro-level tax software is a definite step up from TurboTax and other consumer-oriented software.

A professional tax program is not the same as retail... they assume that you know a good deal about taxes since you are doing other people's taxes....


For a person doing their own taxes I would never recommend a professional tax program.... also, they cost more....

 

[target2019]

A professional tax program is not the same as retail... they assume that you know a good deal about taxes since you are doing other people's taxes....


For a person doing their own taxes I would never recommend a professional tax program.... also, they cost more....

Yes, that was the point I was making. What a professional preparer uses is hopefully different that what you use. In my experience it is, but I limit that to 3 preparers in my area.

I also was not recommending ProSeries for an individual, mainly for cost. For a high percentage of persons reading this, TT is sufficient.

I would recommend an investment in such software if you do more than a few individuals and multiple states, and will continue to see the situation get progressively more complex. Yes, you can do that with TT, but my experience is that with a history of data in professional software, I can complete the 3-5 individual/business each year in far less time.

 

[H2ODude]

We've done it ourselves and with CPA. Because we've built a relationship with a CPA who only charges us $300, I'm perfectly happy to do that. I've scanned his work (well, his underling's) and find deductions and credits pulled out from places on our Fidelity paperwork I was not aware of. Most importantly though, he's available over the phone to answer obscure financial questions tax related or not and I get free advice I trust. I will admit I don't agree with some of his philosophies on politics and "never pay a tax until you have to" but I take that all in stride. For $300 a year the advice and not having to futz with it all is worth it.